713Bankruptcy.Com's Blog

The following questions and answers were submitted to 713Training.Com either at a teleconference or by email during this past week. The answers are provided by Victoria Ring who is not an attorney.  Therefore, the information provided in this material is for training purposes only and no whole or part should be regarded as legal advice.

QUESTION

I have been following your question and answer series and I now have a question.  Can you explain the difference between adequate protection payments and post petition payments and when they would apply in a chapter 13?

Theoretically, adequate protection is supposed to protect the creditors depreciating interest prior to Plan confirmation, but what are the post petition payments protecting, or is this something for the Trustees?

I am thinking that post petition payments would be payments that would be made after the filing, but not sure how or why it works.

ANSWER

Adequate protection is normally INSURANCE.  For example, the lienholder needs for the debtor to maintain insurance on the asset in case something should happen to it while it is in the debtors possession.  This adequately protects the lienholder.

Post petition payments are payments made by the debtor prior to confirmation of the Chapter 13 Plan.  Debtors should start making payments PRIOR to their 341 Meeting and continue making their Chapter 13 payments to the Trustee according to their Plan.  The Trustee will hold these funds until Plan confirmation, at which time; they are released to the creditors and paid according to the Plan.

As far as the motor vehicle being worth LESS than what is owed on it. If the debtor has been paying on the debt for more than 2.5 years, he or she is automatically eligible for a cram down.  This will save your debtors money.

QUESTION

Do you have a couple of quality low cost websites for legal services advertising? I desire to construct an interactive attorney site. I have viewed WordPress.

ANSWER

I just developed the new Attorney Marketing Links site at:
http://www.713attorney.com/links/attorneymarketing.html

To answer your question; I have been very successful in building 9 online businesses. The way I accomplished that is from doing the job myself.  99.9% of all internet marketing I do for my company is free.  It just takes time.  No other legal service is going to do the job with YOUR company in mind.  Other companies only think of their own pocketbook and I do not trust them to work in the best interest of my company.

Besides, why do you need to market your law firm for very long anyway?  All you need to do is market until you have the level of clientele you desire, and then stop.  If you provide a good service and your clients like you and your staff, the majority of your future business will come from satisfied clients giving your law firm praises by word of mouth advertising.  No legal services advertising company can provide you with that level of quality in marketing.

QUESTION

Are you planning to schedule training seminars in Chicago, Illinois in 2010?  I am sure there are interested parties in Chicago, other than myself who would attend.  I have ordered my training materials already, but I could greatly benefit from live training.

ANSWER

I receive many requests from people all over the U.S. asking me when I plan to be in their area.  Please understand that I have been traveling and training at seminars since 1992 (18 years).  I wish I could travel like I used to, but when I leave to do a seminar, my own workload gets behind.  Plus, with the progression of age and diabetes, I need to curtail my traveling from the massive amount I have done in the past.

That is why I have developed a wide range of training options for you.  I can train you privately at your computer, or you can come to Colorado for personalized training.  Flying is cheaper than buying gasoline these days anyway.  For more information, check out these links:

Online Training at Your Computer
http://www.713training.com/shop/cart.php?m=product_detail&p=96

Bankruptcy Petition Review Training
http://www.713training.com/shop/cart.php?m=product_detail&p=86

Personal Training in Colorado
http://www.713training.com/shop/cart.php?m=product_detail&p=98

SPECIALS OF THE WEEK

Complete Bankruptcy Kit (Both Chapter 7 and Chapter 13 Training Materials)
http://www.713training.com/shop/cart.php?m=product_detail&p=59

Chapter 13 Training Workbook
http://www.713training.com/shop/cart.php?m=product_detail&p=80

4 Years of Bankruptcy Training via Teleconferences
http://www.713training.com/shop/cart.php?m=product_detail&p=116

How to Conduct Online Deed and Records Searches
http://www.713training.com/shop/cart.php?m=product_detail&p=102

http://www.vbacertification.com/

News Release for January 4, 2010

The first online exam has been developed for virtual assistants by Victoria Ring, Certified Paralegal and Bankruptcy Specialist.  The Virtual Bankruptcy Assistant Certification Exam is comprised of fifteen separate quizzes that measure a variety of skills including an accurate analysis of the bankruptcy petition preparation skills of the virtual assistant.  This all important skill is a must for debtor bankruptcy attorneys, which is a fast growing segment in our society at this time.

Chapter 7 and Chapter 13 bankruptcy filings are increasing at an alarming rate.  According to PACER (public access court electronic records), for the 30-day time period covering March 1, 2009 through March 31, 2009; a total of 134,282 bankruptcy petitions were filed in the United States with 99,575 of those being Chapter 7 and 33,123 being Chapter 13.  The bankruptcy court was open 22 days during the month of March 2009, so this averages out to be 6,104 petitions filed per day, 254 per hour or 10.58 per minute.

That is why a test to determine the skill set of virtual assistants who work for bankruptcy attorneys needed to be developed.  It is imperative to protect debtors, attorneys and the court system from poor quality work that can result in innocent people losing their homes and other assets.  In the past, the debtor bankruptcy field has been neglected when it comes to training and furthering their education.   Bankruptcy attorneys were forced to learn from other attorneys and the office staff simply learned from making mistakes and fixing them.

Now that debtor bankruptcy is becoming such a growing field, many attorneys are starting new practices or adding a bankruptcy department to their current law firm.  But with the lack of educational training materials, the job may seem impossible for most attorneys.

713Training.Com, a company that is dedicated to the training, education, and support of Chapter 7 and Chapter 13 bankruptcy attorneys nationwide is the leader in the development of training materials specifically for this market.  The VBA Certification Exam can be used by the virtual assistant who needs certification to work for bankruptcy attorneys; as well as attorneys who want to use the exam for pre-employment testing of their office staff as well as virtual assistants.

For more information, including a complete overview, visit:
http://www.vbacertification.com

LISTEN TO THE MORTGAGE CRAMDOWN AUDIO TRAINING AT:
http://713training.com/mortgagecramdown/

Depending on the speed of your internet connection, this 25-minute audio should immediately begin playing as soon as you click on the link above.  It has been programmed to play in Windows on both Internet Explorer and Firefox platforms.  I hope you enjoy it.

This information is extremely important.  Attorney can use the information to save their clients literally thousands of dollars and VBAs can use the information to provide their attorneys with a valuable service.  In fact, this is the information law firms needs to help save homes and keep homeowners in their property.  Even if you do not need the information right now, it is worth your time to listen and pass along the information to those who can benefit.

There is nothing to download. Just click on the link above and listen to the audio of the training conducted by Victoria Ring on December 13, 2009.  Thank you for taking time to listen to this excellent information in mortgage cram downs and strip downs.

Have a wonderful week.

Bankruptcy Petition Case Training Collection
http://www.713training.com/shop/cart.php?m=product_detail&p=117
Price: $39.99

Learn from REAL WORLD examples.

This CD collection contains ACTUAL bankruptcy cases that you can research and follow on PACER.  Each case file contains (1) client intake forms; (2) attorney cover sheet; (3) notes and emails pertaining to relevant points within the case; (4) the actual software file so you can follow the progression from beginning to end; (5) pay advices; (6) credit counseling certificates; and much more.

The ten (10) cases included in this collection will train you in a variety of skills as you will see below:

Case No. 1
This case is a very simple Chapter 7.  Joshua is a young man with little income. The only problem with this petition is a couple of small assets that you will encounter on Schedule B.  Therefore, this case is perfect for the beginner to practice with.

Case No. 2
This is another excellent case for beginners to practice with.  It is a standard Chapter 7 with few assets and very few problem situations.

Case No. 3
This is an excellent case to help introduce you to fraud.  After I had done the initial input on this petition I discovered the client was hiding several assets and the attorney asked me to overlook items that I needed clarification on.  Due to these problems I stopped working on the case immediately.  Later I found that the California Bar Association had filed charges against the attorney but I do not know the outcome.

Case No. 4
This case will introduce you to how IRS taxes are treated in a Chapter 7 case for a client filing under federal exemptions.  You also will learn the reason this case has not been filed yet; the client owes the IRS almost a quarter of a million dollars.  In this case, the attorney is negotiating with the IRS before the petition is filed.

Case No. 5
This case is currently delayed due to the excessive amount of inventory the debtor has in his business.  This case may be filed by the time you purchase this collection so check the Eastern District of New York on PACER to follow the case.  This is an excellent case to show you how unexempt equity can cause devastating problems for debtors.

Case No. 6
This is a typical business case that starts off easy but turns into a catastrophe.  This debtor thought he could quickly file a Chapter 7 and dismiss his debts.  But he continually refused to provide the attorney with verifiable income records for his business.  Once we started digging around and asking questions, he decided to not file his case and never returned to the attorney’s office.

Case No. 7
This is a standard Chapter 7 bankruptcy case but with one twist: the motor vehicle could be eligible for a strip down so that the debtor can save $7,000. Since this is a Chapter 7 I was unable to propose a cram down inside the petition.  If this would have been a Chapter 13, there would have been no problem.  However, in a Chapter 7, the process is treated a little differently and this case will teach you the skill so you may be able to save clients thousands of dollars on future petitions that you do.

Case No. 8
This is a Chapter 7 that was originally drafted by non-experienced legal assistants working for a bankruptcy attorney.  You will find in my notes the many different problems occurred with this petition and you will be able to document the changes throughout the petition process.  This case will demonstrate exactly how poor quality work at law firms can cost you a great deal of time.  Working with your attorneys to develop a smooth routine where work flows at maximum efficiency require making mistakes and making adjustments.  However, once you have achieved the right mix; both the attorney and VBA will enjoy healthy incomes.

Case No. 9
This case will point out the specific errors the attorney made so that you can apply the same reasoning to future bankruptcy cases that you work on.

Case No. 10
Compare both files included in this case and cross-reference with my notes to understand how this Chapter 13 was put together.  This case will also teach you a great deal about Chapter 13s which will advance your skills to the next level.

For more info or to order:
http://www.713training.com/shop/cart.php?m=product_detail&p=117
or visit http://www.713training.com/shop and click on the GREEN START icon

Question:

I am an attorney and I have a client that makes too much money for standard Chapter 7 even with the Means Test.  I recalled, that if debts are over 50 percent, one does not need to employ the Means Test at all.  Is that correct?

Answer:

According to ehow.com at:
http://www.ehow.com/about_5435991_qualifications-file-chapter-bankruptcy.html

If you don’t qualify for Chapter 7 under the means test, there is one other way to qualify. This occurs if your income is insufficient to pay your debts over a five-year period. Under Chapter 13, you can deduct certain necessary expenses from your average monthly income. What’s left over is your discretionary income, which, when multiplied by 60, is the amount you’d be expected to pay toward your debts. If this amount is less than 25 percent of the total debts that can be discharged in bankruptcy, you fail to qualify for Chapter 13 and are thus able to file under Chapter 7.

Victoria Ring
www.713training.com
www.713attorney.com
www.713bankruptcy.com
www.navba.org

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http://713training.com/chapter13video/ch13_teleconference_sample.html

The information in this video lesson will only be available for a short time.  This is because the Senate could approve the proposed bankruptcy bill at any time.  The materials in the Chapter 13 Training Kit are produced and sold in an effort to arm attorneys with the knowledge they need to KEEP CLIENTS IN THEIR HOMES and save them money.

Attorneys also increase profits for their law firm because they are paid as much as $1,000.00 to file the necessary paperwork for an Adversary Proceeding.  This additional fee can be incorporated into the Chapter 13 Plan and paid within the first month or so of the filing.  If you are working at the paralegal level and understand how to draft legal documents, the Chapter 13 Training Kit would be excellent for you to use to provide this much needed service to attorneys nationwide.  It is a service that requires knowledge that very few legal personnel have at this time.

ONCE THE LAW CHANGES, THIS INFORMATION COULD BE OBSOLETE

The Bankruptcy Bill allowing bankruptcy judges the power to grant mortgage cram downs and strip downs was passed by the House of Representatives back on March 5, 2009.  However, the bill has not yet been approved by the Senate.  During this period of time, many courts are allowing mortgage cram downs and strip downs as a last resort situation.  In the Chapter 13 Training Kit you will learn how to work to the advantage of the debtor.

Watch the free sample video (no login required):
http://713training.com/chapter13video/ch13_teleconference_sample.html

To Order:
http://713training.com/shop/cart.php?m=product_detail&p=112
or visit, http://713training.com/shop and click on CHAPTER 13

UPDATE ON CHAPTER 13 TRAINING MATERIALS

In 2007 I developed the Chapter 13 Workbook and we have sold it from the website for $99.99. However, when I developed the Chapter 13 Seminar Kit, which contains updated 2009 information regarding cram downs and strip downs, the 2007 product caused confusion with customers not understanding the difference.

Therefore, I have decided to DISCONTINUE the 2007 Chapter 13 Workbook and replace it with the Chapter 13 Seminar Kit since this product is brand new.  Also, it contains updated information as it relates to the mortgage industry today.  This does not mean that the older 2007 material is obsolete.  It still provides excellent training for attorneys, paralegals and virtual bankruptcy assistants in understanding Chapter 13s and Chapter 13 Plans and is well worth the price.

I currently have 37 Chapter 13 Workbooks in stock and I am offering a $20 DISCOUNT.  Each Chapter 13 Workbook comes with a training CD that also that contains a training lesson. For more information or to order, visit:

http://www.713training.com/shop/cart.php?m=product_detail&p=80

ADVANTAGES

** For attorneys, paralegals and virtual bankruptcy assistants, learning how to prepare Chapter 13 Plans is essential now that the new BAPCPA is in effect. Because the BAPCPA dictates whether a debtor is eligible for Chapter 7 or Chapter 13, it is to your advantage to learn how to prepare Chapter 13′s since you already know how to prepare Chapter 7s.

** Chapter 7 bankruptcy attorneys can add Chapter 13s to their law practice and stop throwing money out the window by giving the case to another attorney. Also, a Chapter 7 attorney can enjoy the financial benefits a steady stream of Chapter 13s can bring.

** As a virtual bankruptcy assistant, you can give yourself an immediate raise in salary. Preparing Chapter 13 Plans requires additional work; therefore you are paid $100 or more PER PETITION over and above your Chapter 7 fee.

Do not miss out on the opportunity to advance your skills which will pay off many times over.

Order online with Visa or Mastercard at:
http://www.713training.com/shop/cart.php?m=product_detail&p=80

Price reduced by over 50% due to reduction in overhead expenses

I am happy to report that the Chapter 13 Concepts Exam has made a giant leap into the 21st Century.  It has been redesigned so that students now take the Exam online and receive their final grade immediately.

In the past, a student purchased the exam for $79.99.  They completed it by hand and faxed back to 713Training.Com.  When we received it, we forwarded the Exam to a paralegal to grade the old-fashioned way (by hand). This process was taking longer than anticipated and students were growing impatient.

To solve these problems, we have now placed the Chapter 13 Concepts Exam online.  This change has totally eliminated the wait time for the student in obtaining their grade, plus it reduces the cost in overhead expenses.  Because the overhead expense costs are so significantly reduced, I am passing the savings on to you.  Instead of paying $79.99, you now SAVE $40.00. The final cost is only $39.99 for non-members and $36.00 for members.   This will become the standard price.

Now, simply purchase the Exam for $39.99, study the materials, login online and take the Exam.  If your Final Grade is 100% or higher, you will receive a personalized Certificate of Training. Print the Certificate on your color printer and frame to hang in your office.  The electronic PDF version is also essential for adding to your online portfolio for download by attorneys from your website.

NOTE: This is an OPEN BOOK test. You should not score less than 100% unless you do not study the materials.

EARN YOUR CERTIFICATE NOW

Purchase the Chapter 13 Concepts Exam for $39.99
http://www.713training.com/shop/cart.php?m=product_detail&p=101

Join the NAVBA and Save 10% on All Future Purchases
http://navba.org/JoinNAVBA

I am very happy to report that the Law Firm of John H Spurgeon in Pasadena, California has opened a new debtor law bankruptcy practice and will be accepting new clients soon.  Attorney John Spurgeon worked as a Certified Public Accountant for many years before graduating from the California Bar approximately 10 years ago.

Since that time, John Spurgeon has been specializing in family law.  He had been referring all bankruptcy requests out to other attorneys in the area.  However, when he found the requests were growing in number, he decided to open up a bankruptcy law practice to compliment his existing customer base.

A quick search on the American Bankruptcy Institute website at www.abiworld.org will show you the high level of increase in bankruptcy filings within the state of California.  For example: in the Second Quarter (April, May and June) of 2009 there were a total of 53,505 filings in the state of California alone.  These figures result down to almost 600 California residents PER DAY filing bankruptcy.  That is the most extreme I have ever seen in my entire 30+ year legal career.  The numbers are mind boggling and you may not understand the level of significance unless you are working in the bankruptcy field.

Due to these high numbers of filings, many homes in California are owned by banks.  Although the state of Florida is also suffering and filings are extremely high there also, the difference between the appraisal amount and the amount owed to the bank is much smaller in Florida compared to California.  For example: In California, there are many homes (priced at $100,000 in other areas of the country) originally selling for $700,000 and up.  Now that the housing market has collapsed, California home owners are finding the same property is appraised at $200,000 and they are underwater a half million or more.

In an effort to stabilize the housing problems in California, many California bankruptcy courts are putting provisions in place so that debtors may stay in their homes and this helps to prevent more criminal activity within the neighborhood as well as protecting the investment of other homeowners.  For example, did you know there are unscrupulous people who pick the locks of bank-owned homes, change the locks and rent the property to innocent victims?  If the person(s) owning the home would have stayed in it instead of moving the moment they received a foreclosure notice, this would not have happened.  It is unfortunate that people often do things that hurt them simply out of panic.

WHAT PROVISIONS IS CALIFORNIA BANKRUPTCY COURTS PUTTING IN PLACE FOR PEOPLE?

713Training is putting together a training package that will teach California attorneys how to propose strip downs of second mortgages and cram down first mortgages.  This is a new procedure that has been tested and approved by the Central District of California (the most difficult district to file a petition in).  Look for a future email announcement regarding the training package so that you can save your clients literally millions of dollars and help them get a fresh start in these hard financial times.

DO YOU KNOW OF ANYONE FACING FORECLOSURE?

One of the goals and focuses of 713Training is to educate as many people as possible during these hard financial times.  If you know of anyone who has received a foreclosure notice, tell them NOT TO MOVE.  Stay in their home and keep it well maintained.  There are many opportunities for homeowners who are behind in their mortgage (and many are coming down the pike); simply because the bank would prefer to preserve their investment by having the property owner stay in the home instead of leaving and have the home subject to criminal activity.

ARE YOU AN ATTORNEY?

If you are receiving this notice and you are interested in discussing the establishment of a bankruptcy law firm for your practice, so that you can help 100s of people facing foreclosure also, feel free to call Victoria Ring at 719-472-4109.  What is the cost?  It depends on your training needs, which is why you must call for a free consultation and assessment.  Some attorneys only require training by teleconference and over the web, while others prefer that we physically come to their location.

REFERENCES FOR ADDITIONAL INFORMATION

Contact Information for John Spurgeon
http://www.jsfamilylaw.com/

Attorney References
http://www.713attorney.com/references.html

Help and Assistance from the 713Team
http://www.713attorney.com/713team.html

http://www.713attorney.com

We are finding that more attorneys are attending our Chapter 13 Training Seminars versus non-attorneys and many of them are requesting confidential training services for them as well as their staff.

To meet this demand, Victoria Ring and Deborah Shaffer (with 57 years of combined legal experience) have joined together to provide attorneys with these important services that will help them grow and prosper their bankruptcy law firms:

** Confidential training for attorneys and their staff via the telephone
** Training can be scheduled any time or any day of the week, including evenings and weekends
** Training session is recorded and provided via email in MP3 format for later review
** The price is only $125 per hour and this time is more than sufficient for most attorneys

Attorneys can schedule training in topics like:

** Cram downs for debtors who are behind in their mortgage payments
** How to propose a strip down for a second mortgage
** How to present Chapter 13 Plans for the maximum profit for your law firm
** How to market your law firm online and offline
** and any other topic that we have the knowledge and experience to provide training in.

If you would like to schedule a training appointment, please call Deborah Shaffer at 610-698-6977 to discuss your needs or visit http://www.713attorney.com